Controversial plans to regenerate a seaside resort harbour will not happen unless flats and houses are included, a council has been warned.

Officers at Torbay Council said ruling out homes at Paignton harbour’s run-down south quay would deter developers, and cause “reputational damage” to the authority.

Kevin Mowatt, one of the council’s most senior officials, said similar work at Brixham and Torquay harbours had received external funding, now in short supply.

He said: “Right now the professional officers’ opinion is if you want to redevelop south quay, housing is the only way to do it.”

His comments came as the council’s harbour committee voted to back investigating how to regenerate south quay, amid concerns housing would alter the small harbour’s character.

Independent councillor Vic Ellery pointed to Exmouth, where he said residential development had altered to look and feel of that town’s harbour.

“What I am against is a speculative development, looking at residential units to make it financially viable,” he said. “That is not what I want to see at Paignton harbour because it will absolutely change the character of Paignton harbour.”

Cllr Ellery’s attempt to rule out intrusive housing, supported by a fellow independent and two Lib Dems, was defeated. Instead, the committee supported examining regeneration options, which could include more than 50 new homes.

The plans have raised concerns among harbour users, and the public gallery was unusually full for Wednseday's meeting. Critics say the future of sports and social clubs could be jeopardised if houses were built, and claim local people are unlikely to be able to afford the homes.

Terry Ekers, who chairs the harbour users group, said: “We are not opposed to development but we want development that is harbour-related. It is a small harbour, it is so different from Torquay or Brixham.”

Torbay’s elected mayor Gordon Oliver won applause when he said the plans took no account of anticipated rises in sea level, and should be dropped.

“It is a quaint harbour, it is an area that has a character of its own, and you cannot compare it with Torquay, or with Brixham,” he said.

Committee chairman Nick Bye, who with fellow Conservatives voted in favour, said regenerating south quay had been a long-standing ambition, adding: ”We are just trying to maintain what is a special place and breath new life into it.”

The committee's vote prompted Lib Dem Steve Darling to warn: “I am very concerned that what we are doing here today is starting off a juggernaut that will be very difficult to put the brakes on.”

The full council, meeting later this month, will have the final say on whether to investigate the proposals.